Pakistan leather industry fights utilities price rise
Pakistan’s leather and footwear industries have urged the government to
He also pointed out that the simultaneous 10% reduction in gas prices for commercial consumers was insufficient as gas rates have been at extremely high levels for the last couple of years.
revoke an increase in electricity rates which they claim is harming production and export orders, following The Water and Power Development Authority’s decision to raise the electricity tariff by 10%, effective February 24.
Chairman of the Pakistan Tanners’ Association S Naseem stated that the country’s leather exports had already decreased between July and December 2006 and expressed concerns that this price increase would exacerbate the situation, raising production costs further and negatively affecting the international competitiveness of the leather and leather goods industry.
He urged the Prime Minister to review the decision and to reduce the latest electricity tariff by 50%, or introduce incentives/subsidies by way of compensation to enable the industry to compete in the world market.
